Are suppliers adjusting to the new maximum chicken price?

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Suppliers are in the process of adjusting to the new maximum chicken price, with initial inspections indicating a general adherence to the RM7.90 per kg limit.

The implementation of the 2021 Aidilfitri Festive Season Maximum Price Control Scheme (SHMMP) began nationwide on April 21, establishing a maximum price of RM7.90 per kilogram for chicken. On the first day of this scheme, authorities conducted inspections across 2,100 premises, including retailers, farmers' markets, sundry shops, wholesalers, and hypermarkets. During these inspections, only two complaints were lodged concerning chicken being sold above the stipulated maximum price, suggesting that most suppliers were already complying or were in the process of adapting.
Initial Compliance with the Maximum Price

During the initial enforcement of the SHMMP, the price of chicken appeared to stabilise, with inspections revealing a high level of adherence to the RM7.90 per kg ceiling. While the Ministry of Domestic Trade and Consumer Affairs acknowledged that some adjustments at the wholesaler and retailer levels were expected on the first day, the low number of complaints indicated that these adjustments were largely successful. The ministry stated its intention to provide adequate time for all parties involved to comply with the new regulations.
Established Margins Across the Supply Chain

To ensure that sellers would not incur losses, the ministry has set defined margins at every stage of the supply chain. The price at the farm level is set at RM5.80 per kg, with further wholesale prices determined based on specific regions. This structured approach to pricing aims to guarantee that when the stipulated margins are followed, sellers can still operate profitably while adhering to the consumer-facing maximum retail price.
Potential for Initial Supply Price Discrepancies

It was acknowledged that some instances of chicken being sold at prices reflecting the period before the Maximum Price Control Scheme might have occurred. This could be attributed to supply chains delivering products to retailers based on older pricing structures. However, observations during checks, such as at the Precinct 8 market, indicated that chicken sellers were indeed retailing the product at the mandated RM7.90 per kg, reinforcing the ongoing adjustment process.

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Are suppliers adjusting to the new maximum chicken price?

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